SoundHound AI (NASDAQ:SOUN) Shares Gap Down – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $17.98, but opened at $16.58. SoundHound AI shares last traded at $16.33, with a volume of 15,447,227 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. HC Wainwright lifted their price objective on shares of SoundHound AI from $8.00 to $26.00 and gave the stock a “buy” rating in a research report on Monday, December 23rd. DA Davidson reaffirmed a “buy” rating and set a $9.50 price target on shares of SoundHound AI in a report on Monday, September 30th. Wedbush increased their price objective on SoundHound AI from $10.00 to $22.00 and gave the company an “outperform” rating in a report on Monday, December 16th. LADENBURG THALM/SH SH reissued a “neutral” rating and set a $7.00 target price on shares of SoundHound AI in a research report on Wednesday, November 13th. Finally, Barclays reaffirmed a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a report on Wednesday, November 13th. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $12.07.

SoundHound AI Price Performance

The firm has a market cap of $5.22 billion, a price-to-earnings ratio of -39.22 and a beta of 2.63. The stock has a 50-day moving average price of $13.11 and a 200 day moving average price of $7.72. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.01. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The firm had revenue of $25.10 million during the quarter, compared to analysts’ expectations of $23.02 million. During the same quarter in the prior year, the business earned ($0.09) EPS. SoundHound AI’s quarterly revenue was up 88.7% compared to the same quarter last year. As a group, equities research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, CEO Keyvan Mohajer sold 465,394 shares of the firm’s stock in a transaction dated Monday, December 9th. The shares were sold at an average price of $15.04, for a total value of $6,999,525.76. Following the completion of the sale, the chief executive officer now owns 2,299,148 shares in the company, valued at $34,579,185.92. This trade represents a 16.83 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Lawrence Marcus sold 30,000 shares of the business’s stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $7.15, for a total value of $214,500.00. Following the transaction, the director now owns 178,117 shares in the company, valued at $1,273,536.55. The trade was a 14.41 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 2,782,918 shares of company stock valued at $45,391,343 in the last ninety days. Insiders own 12.28% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of New York Mellon Corp boosted its stake in shares of SoundHound AI by 92.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 997,543 shares of the company’s stock worth $3,940,000 after acquiring an additional 479,912 shares in the last quarter. Principal Financial Group Inc. boosted its position in SoundHound AI by 106.6% during the second quarter. Principal Financial Group Inc. now owns 38,340 shares of the company’s stock worth $151,000 after purchasing an additional 19,780 shares in the last quarter. Commonwealth Equity Services LLC grew its holdings in SoundHound AI by 31.2% in the second quarter. Commonwealth Equity Services LLC now owns 388,877 shares of the company’s stock valued at $1,536,000 after purchasing an additional 92,449 shares during the last quarter. Rhumbline Advisers increased its position in shares of SoundHound AI by 106.6% in the second quarter. Rhumbline Advisers now owns 360,167 shares of the company’s stock valued at $1,423,000 after buying an additional 185,861 shares in the last quarter. Finally, National Bank of Canada FI raised its stake in shares of SoundHound AI by 52.4% during the 2nd quarter. National Bank of Canada FI now owns 31,118 shares of the company’s stock worth $121,000 after buying an additional 10,700 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.